Al-Jouf Agricultural Company turns to losses in 2019 and its management recommends distributing half riyals per share

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The preliminary financial results of Al-Jouf Agricultural Development Company, announced today, Thursday, revealed that it has shifted to incur losses during the year ended December 31, 2019.

The company said, in a statement to the “Tadawul” financial market, that it achieved a net loss of 20.8 million riyals, compared to a profit of 35.8 million riyals in 2018.

The company achieved net operating profit of 359 million riyals, compared to net operating profit of 49.5 million riyals during 2018.

The company attributed the losses recorded during the year 2019 to a decrease in sales of the year by 37.47% at a value of 134.49 million riyals, and an increase in the cost of sales to sales ratio from 71.19% to 81.96%, which had an impact on the decrease in gross profit by 62.88 million riyals by 60.83%.

Other expenses also increased as a result of creating provisions for landing greenhouses and excluding fruit trees with a total amount of 17.44 million riyals, despite the decrease in selling and distribution expenses amounting to 13.21 million riyals by 36.71%, and Zakat expense decreased by 32.46%.

The company’s board of directors recommended distributing cash dividends to the company’s shareholders for the second half of the fiscal year 2019, at a value of 15 million riyals, or 0.5 riyals per share.

Revenues fell to 224.4 million riyals in 2019, compared to 358.9 million riyals in 2018.

It is worth noting that the company achieved a net profit of 1.3 million riyals during the first nine months of 2019, compared to a profit of 24.7 million riyals in the corresponding period of 2018.







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